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Pan American Silver Corp. (Friday’s close $13.79) rallied from $7.85 in January, 2016, to $27.56 in August of the same year (A-B), pulled back to $18.70 by the end of the year (C) and then stayed in a large, multiyear wedge formation (dashed lines).
The stock had a major breakout from this pattern in mid-2019 (D), and after a return to the top of the wedge (E) it resumed the up-trend (F). The stock is currently in the midst of a correction toward the 40-week Moving Average (40wMA) where it should find good support (near ±$24). Only a sustained decline below this level would be negative.
After the correction, Point & Figure measurements provide targets of $34 and $37. The large wedge pattern (dashed lines) supports significantly higher targets.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com